tv Taking Stock With Pimm Fox Bloomberg July 7, 2014 9:00pm-10:01pm EDT
♪ >> this is "taking stock" for monday, july 7, 2014. i am pimm fox. today's theme is build. i will introduce you to a dutch printing company that has planted a business right here in new york that can turn your idea into a real-life product. plus, lego. there is a billion-dollar business. some parts can be expensive. i will talk to one executive who started a lego rental service. it is monday, so my producers will try to stump me with tonight's mystery guest. first, let's get headlines from
carol massar. >> puerto rico's electric power authority has negotiated with creditors to push off repayment of bank loans until july 31. the island's main provider of electricity has until month's end to repay some bank lines of credit. it uses those to buy fuel. the authority has $8.6 billion of debt. petsmart investor longview asset management calling for the pet supply seller to consider a sale. longview says petsmart would be more highly valued by private holders than investors in public markets. and that is a look at some of monday.headlines this back over to you. >> thank you. the transportation safety administration is prohibiting battery-dead electric devices at airports. your smart phone has to have some battery life in it in order to board the plane. with more on electronics, i am joined by ziklag systems founder
tom malatesta who joins me from washington. ziklag is behind the so-called fortressfone which boasts a self-destruct button. tom, great to have you with us. can you tell people what is fortessfone? >> a fortressfone is a secure phone. it works on the enterprise and basically hardens your phone calls from end to end. no man in the middle. the calls are secure. >> how do you do that? give us a little detail. >> well, basically, we use commercial, off-the-shelf technology. we are focused on the android platform right now. we manipulate the hardware in the phone and we add our own secret sauce, so to speak, so it can control the phone and everything that goes on when the phone is either being used in encrypted or non-encrypted mode.
>> what does it cost? >> if you're on the enterprise, you have a couple of versions. the high-end phone is about $2000. it is not something consumers will buy. it is something that a corporation or an organization is going to buy to protect individuals or executives. we have a silver version that runs about $629-$649. that phone is more apt for the consumer market. >> in that consumer market, is there a special network that has to be in existence in order to tie the background, the data that would maybe be stored with the company's server? >> well, the network resides with the people that supply the phone. it would be us in that case. when you have the phone on and you were using our technology, you have to be on our network. >> ok. >> so, basically, that is how it works. >> how big is this network right now? >> the network is small because we are an early company, about two years old.
so it is a small, early-stage company and coming into the marketplace as we speak. >> give people a little bit of your background. you have been dealing with electronics and security for quite a while. >> i have been on the entrepreneurial side of cyber security for about the last 20 years. i am a tech junkie. i really enjoy the subject matter. i want to thwart the miscreants so i am very interested in all technologies that help protect assets whether it is private information, company information, intellectual property or whatever. >> you have worked in a public-private partnership for the state of maryland, correct? >> i did, i was president of the infraguard chapter for the state of maryland which is a partnership with the fbi. i was president in 2013. a very good organization. it involves a lot of civilians who are trying to work with law enforcement to keep people
informed about threats to the critical infrastructure. my area of interest was on the cyber side. >> talk about the infrastructure in the context of this new tsa move to ban certain smartphones that may lack a charge. in their battery. give us the details. what do you know about this? >> if you remember back after 9/11, if you are traveling, very often you take your notebook computer out of your bag. you have to start it up so they can see that the notebook itself actually worked. the same thing is going on with mobile devices. what they are concerned about is that there are explosives in phones that are hollowed out so that they can be remotely detonated at some point during the flight. >> i beg your pardon. go ahead. >> no, i'm sorry. go ahead. >> i was saying -- is that something that would be a response to a specific threat or is it a response to the greater sophistication of smartphones and tablet devices?
>> i think what you're looking at is an ever evolving enemy. someone that is very good at developing new technologies to exploit weakness and to enhance their effort to hurt their enemies. we have the evolution of smart phones and mobile devices at the present time which are being used by tens of millions of people all over the world. and if you are looking to blow up an airplane, that would be something that a lot of people would have with them on the airplane. so tsa is very concerned about how to make sure those devices do not become a transmission base for evil, basically. >> what about the role of social media? the back-and-forth that goes on with facebook and twitter and the use of those services with, let's say, the fortressfone? >> you can use any social media
that the fortressfone kernel recognizes. what you cannot do is download a bunch of apps on your phone that the enterprise is not aware of. the whole thing with enterprise is to make sure that whatever is on the phone when it is in encrypted mode, it is controlled by both the enterprise and the user. if you tried to download some app on the phone that is not authorized by the enterprise, you will be able to download it on the phone, you just will not be able to use the app when it is encrypted mode at all. >> talk about your high-end phone. i believe you said around $2000 but, of cours,e connected to a system. enterprise system. would this be the kind of phone you take the china? >> it will be the kind of phone you can take any place on the globe. the purpose of of the phone is to allow secure communications
between you and whoever else on the enterprise. the ability to maintain privacy and maintain secure communications. >> is there a device on the market now which reports to offer the same type of feature? >> there are a number of competitors, yes. the one getting the most press right now is a device called the black phone. >> what do you make of that? is the market big enough for both of you? >> oh, yes, you are talking about tens of millions of people. the question is how secure do you want to be? if you have some really valuable information that you need to communicate and you are worried about it being pilfered away by miscreants, what you are going to do is go for the most secure capability you can for a designated number of people. if you want to go to a wider audience, the question is how secure do you want to be? do you want to be bulletproof, or 90%, 80%? whatever. that is a business decision. you have to prove the value-add
for the people that want to buy this phone. >> very interesting. thank you very much, tom. the founder and chief executive of ziglag systems. joiniing us from washington, d.c. we are going to stay with technology next and talk to the cofounder of a company called shapeways, a 3-d building company that can build the next generation of manufacturing. it is mystery guest monday, time for your first clue. my mystery guest likes to suit up every day. this is "taking stock" on bloomberg. ♪
right, the world's largest 3-d printing community and marketplace is getting even bigger. shapeways announced it was adding four precious metals -- platinum, gold, rose gold, and 14 karat white gold. the dutch company planted a big flag in queens, new york. let's talk to the cofounder and chief executive, peter
weijmarshausen. did i get that at all close? >> yes. >> thank you. let's talk about how did you end up -- i mean, you have been doing this a while. 2007, you got bitten by the 3-d bug. >> we started in 2007 because we saw the opportunity that 3-d printing would transform how we would think about products. then in 2010, in the summer, we moved our main office to new york. >> the 3-d printing technology that we may be familiar with is this constant layering that goes on. you do something slightly different and what comes out is a cube that really is like a present or something you have to pull apart to dig inside. and see what is going on. tell us about centering plastic. >> 3-d printing is actually the name for lots of different technologies and one of them is the plastic you talked about which basically is using a laser and powder to make products in plastic.
it is a little like pulling out presents. >> what sets this apart? the material you can use? >> shapeways is a service that everybody can go to. we offer not only plastics, but also a wide variety of metals, ceramic. there are all types of options people can choose from whereas what you were referring to as the home printer is only in plastic now. >> right, and all you need is a cad file sent to you and you will basically do it for the cost of the material? >> the user gets opportunity software. the world is completely yours because you can make anything you can come up with. you can make it in all these materials. if you do not know how to use
3-d software, not all is lost. over 16000 designers have set up shop and you can choose from 8 million products. if you like something, you can buy it or you can contact the designer and ask them to change it for you. >> you are a marketplace as well. >> yes. yous an example of products can make, you can make little cars or little toys, but also you can make things out of precious metals. >> we started with plastics but then in 2009, we started first offering stainless and later we added silver. recent, quite a wide range of gold. people gravitated to making jewelry. it is a good product choice for them. >> is there any limitation you see on how big this could be? of the business side in a second, but in terms of the
scale, model people want to make? >> we have different size limitations. plastic can get pretty big. for the precious metals, we have a limitation that is pretty sizable, but not as big as we can do in plastic. for those sizes, you are paying thousands of dollars for one item because you can make something in gold and gold is pretty expensive. >> it is one-of-a-kind? >> yes. >> let us talk about the business. what kinds of things do you get the most requests from in terms of the biggest growth right now? >> jewelry is pretty strong. it is growing the fastest at this point. there is a lot of hobby stuff. there are a lot of design items that don't have function but are beautiful to behold. there are quite a bunch of home accessories and gadgets. it is a wide range of things people make and that is the cool thing because we don't know what it is and then it is making someone happy. >> what about industrial products? are you interested in branching out? >> people do make prototypes with us.
they do make parts for showcasing or to fix things. i am fine with that, but we are definitely focused on the consumer market. >> what would you like to say about the company six months from now? how big would you like to make it? how many sales, for example? >> we don't make any comments about sales, but we do say is that we currently make 150,000 unique products every month. products perique month. >> yes, and by the end of the year, i wouldn't be surprised if it was close to double. >> what about the funding for the actual machinery itself? these are not things you just buy off the shelves. >> the machines are available, but they are expensive. that is the model behind shapeways. we are community for the reason that the machines cost up to $1 million and we want to get everybody the ability to use these very high-end 3-d printers
to make anything they want. >> the printer you are using could cost $1 million? who makes a printer that costs that much? >> the one made by eos, a german company. >> are they the leaddrs in this kind of printing? >> in the plastics, definitely. >> are they also the kind of thing you find out they are capable of producing new things and then you publicize that they can create these things that are so specific and small? >> the cool thing about 3-d printing is the machine really does not care. you can make things that are small where you almost cannot see them all to the way to the maximum size and it is up to you as the user to define it. we have apps you can use to customize things to define whatever you want. >> what about in the medical world? being able to create unique parts for people? >> definitely used in medical. implants and other things,
although that is not our area of expertise. >> you founded this company in the netherlands. why are you now based in new york, in queens? >> good question. we already sold pretty fast after we launched that the united states was going to become the biggest market. it is a big country, obviously. we wanted to have an office in the united states. when we received our series-a funding, we really ask ourselves where do we want to have our main office because we want to attract a lot of top talent joining the team. and where can you find them? if you don't find them in the place, where can you motivate them to go to? it made a lot of sense for us to put our main office in new york. >> thank you very much for sharing your story with us. the cofounder and chief executive of shapeways, peter. we are going to talk about the so-called corn avalanche. u.s. farmers expect a record yield for corn. we will tell you what this means for you, next. ♪
>> this is "taking stock." on bloomberg, i'm pimm fox. food processing and commodity trading corporation archer daniels midland announced they are going to buy the food ingredients maker wild flavors for the price tag of $3 billion in cash. the deal marks their biggest acquisition yet. i am joined from washington by bloomberg's agriculture reporter, alan bjerga. alan, tell us about why they wanted to do this deal? >> commodities is a very volatile business. and it is also a global business. archer daniels midland, one of the world's largest shippers of grain. grain is volatile. they are looking both for some diversity and some stability. wild flavors promises to give them a little more of that. it gets them a little further
downstream, a little closer to the consumer in countries where natural foods are more common. less processed foods more common. it expands their global footprint and it gives them a little more diversity within the food industry which should help archer daniels midland have a little more consistent financial performance. >> do you remember capri, the fruit juice? >> capri sun. it came out when i was a kid. we used to sit in elementary school and read through the ingredients. high fructose corn syrup always got a big laugh because we didn't know what it was. that is actually one of the revenue streams for archer daniels midland. they are number one in this. they didn't get capri sun in this deal. >> when you talk about high fructose corn syrup, that gives me a segue for you to tell us what is going on with the corn crop. a lot of farmers may wish they could have sold even more.
>> corn is heading for another bumper crop. it is a dramatic turnaround when we had that drought. you are seeing the opposite situation. farmers cut back on their planting more than 4% this year. they planted less corn and more soybeans. but they are getting a great crop or corn. the usda's looking at record yields. that is making the corn crop larger even though they have less acreage. it is driving down prices which drives down profit margins. it is a huge turnaround from where we were 24 months ago. >> what are the implications for what farmers are going to plant next season or do we not know yet? >> it has to do with supply and demand and weather patterns. farmers cannot predict the weather, but they certainly can know what the supply situation will be. at the tight inventory of a couple of years ago come into a
huge surplus over the next several years, you may see less corn planting, but in some parts of the country, corn is just what you were going to do. it is what the weather and the soil is suited to. it is what the infrastructure is suited for. there is a history of this with agriculture where you have a real bust and then there is a huge boon. >> there is a big pull for ethanol as well. >> ethanol has been a big driver of this market for about the past decade. you have seen the federal mandates level off and you are seeing in some ways less ethanol being required by the government than there has been before. the cellulosic varieties never took off. as you continue to have better seeds, yields, we are on a treadmill and the american farmer is going to have a hard time getting off. >> thank you very much, alan. it is 26 minutes past the hour, time for on the markets. s&p 500 drops about 4/10 of a percent, down seven points. the dow jones industrial average loses 44. climbing up one quarter of one percent. the nasdaq falling 34 points, down three quarters of a percent.
♪ >> this is "taking stock" on bloomberg. i'm pimm fox. for a look at today's headlines, let's go to carol massar. >> bill ackman's pershing square capital management proposed six new directors for allergan. pershing square which ammassed stake ahead of valient's takeover bid has called for a meeting of allergan shareholders. highs winds and crashing waves are threatening okinawa as a super typhoon nears japan. it has maximum-sustained winds of about 150 miles per hour.
making it the equivalent of a category 4 hurricane. that is the equivalent of a category four hurricane. back to you. >> in the digital health sector, there were nearly 250 deals in the first half of this year which raised a combined total of more than $3 billion. startup health is an investment platform that focuses on the sector and they hope to launch 1000 companies by 2020. the cofounder and chief executive, steven krein, joins me now. tell people what is a technology platform? you are trying to funnel money from point a to point b and, hopefully when it gets to b, it grows. >> it is a global startup platform that has an academy for entrepreneurs to help them build businesses. a network of all the
stakeholders globally that are helping these people build businesses. a very vibrant community of entrepreneurs. they're working together to transform health care. >> how do companies that are seeking funding or advice get onto the network? >> they apply. we have had over 2000 companies apply. in the last 2.5 years. we've accepted 71 of those companies. three have already been acquired. it is the kinds of companies and from different locations that they come from that is most interesting to us. >> give us an idea of the companies -- the ones that were acquired. >> a company called basis which is a really risk one watch that has different accelerometers and devices and sensors to actually detect when you were getting sick. >> wearables? >> absolutely. we have a number of wearables companies that we are very excited about. a company that was acquired by
web m.d. a huge area where all of a sudden patients are taking control of their health, but a way for doctors and patients to communicate in between visits. the third one is really fascinating out of houston which was acquired by a company in the consumer genomics space. >> anything that limits what kind of health care entrepreneur can apply? >> not doing anything in the therapeutic or medicine side. so, really, not any pharma. anything that touches data, that scales and has technology. the undercurrent across everything is the data piece. all the devices in the medical world are figuring out to collect data and analyze it to give doctors and patients and caregivers a lot of information from that data. that helps them live healthier lives. >> one of the things that helps you scale is your roster of investors and people helping you
run this. >> we have a great group of really well-known entreprenuers that understand the power of the network effect which is a really our thesis for building the startup health. everyone from steve case, jerry levin, mark cuban. the entrepreneurs that built other industries and are putting their sights and efforts in the health care industry. >> it feels like it might be a bit of an irony with steve case having sold aol to jerry levin. of timewarner. that deal not precluding them from getting together on this. >> you have health care reform. you have the aging population. mobile devices and sensors and ipads and iphones emerging in the marketplace. finally, it is the golden age of entrepreneurship. you have these unique conditions converging. at the same time, and whether you saw it in the 1980's or 2000's, we are living in the beginning of an epic decade. i think all these well-known
people, as well as people like ge and cleveland clinic, they really understand that the entrepreneurs who are imagining or reimagining health care are the ones to get behind. >> startup health -- if you are bringing together that academy you described plus the potential mentors and companies, where do you come in? >> we have a stake in the company anywhere from 2% to 10%. startup health. we make money when we build the business. >> you invest in the companies? >> we actually have an equity stake in each company through the development of this program which last three years. we support them for the first three years of the business where fund raising and capitalization and customer development come into play. >> those 71 companies you have a stake in. then you match them with individuals or existing companies for joint ventures? >> that is where the network comes in. if it is a big network like ge or a small one, our whole approach is to connect them with the individuals that the
organizations that they want to partner with and see how we can match-make in a way that is actually going to help build a value in the company that is getting funded with as well as a large company. and that is the real important part. the big companies that want to lean in like ge and aarp and cleveland clinic and so many others that want to figure out how to partner with these early-stage entrepreneurs. >> you would then work with investment bankers at established organizations that would help them make deals? this is just a complementary set of offerings? >> all the stakeholders -- the payers, the providers, pharmaceutical, the venture capitalists, the foundations -- all the different stakeholders not just here in the u.s. but globally that are interested in tapping into this one moment in time where i think it is one of the most exciting times in history to be an entrepreneur, to lean in and help these organizations at a moment where these large organizations do not necessarily have an innovation agenda but they know they need to partner with these reimagination health care
transformers. >> thank you for transforming all that information for us, steven krein. coming up, i will take a look at one company that is looking to become the netflix of lego. they will help you save some big bucks instead of buying those expensive bricks. guest monday.ery time for our second clue. my mystery guest got started working in the fashion industry when he was just 16 years old. this is "taking stock." ♪
at that price, maybe you want to think about renting rather than buying. pley is a rental lego service. they accept requests for specific lego sets. i am joined by the chief executive and cofounder. great to have you with me. explain how you started this business. did you have a lego habit? >> thank you for having me here, pimm. the way it started was about a year and a half ago when i realized i spent about $3000 on my son's lego. but when i fan, looked at it, i said there is definitely a better way to go about it, a way that will make it a lot more affordable for consumers to get those amazing toys and make it a lot more convenient for them. basically, we created the model based on the traditional netflix model in which consumers can choose the lego set they want and it is being delivered to
their door. >> pley, p-l-e-y, how does it work? >> the user comes to our website, pley.com, and can register and they can choose from a catalog of more than 300 lego sets. the set that they want, and there are sets for girls and boys and for unisex and architecture and plenty other sets. the user basically add it to their playlist and they get the first set to their door, they play it, anyway at that -- and when they are done, they send it back and get the second set. >> use the "star wars" lego set as an example in terms of cost and time and how often this would happen. how often this would happen. >> yes, so that's a great question. you look at "star wars," obviously a great franchise.
the lego "star wars" set like the death star or star destroyer can cost up to almost $400. on pley.com, you can get it for $39 a month which is about 90% savings on the cost of actually getting it. overall, we save the user about 70% on purchases. >> is there any kind of refurbishing or any kind of cleaning that goes on with the legos before you let them out? question.cellent getting the lego sets and figuring out is probably the most challenging task. we have the former ceo of netflix and we figured out that we developed a very complex algorthim -- we weigh every piece to one hundredths of a gram and we can figure out from that what is missing within the set. we can replace those bricks with new bricks. those bricks then go to very professional, commercial cleaning and sanitation process
that cleans them to the level of a restaurant. if you let your son and daughter go to restaurants and eat from a fork or a spoon, even enough definitely give them our lego sets. >> what happens if the lego users, children or adult, if they lose some of the pieces? >> we know kids will lose pieces, that is a very natural thing. the bricks are very small and tiny so we have left it up to a normal wear and tear which is about 15 pieces and we do not charge for it. >> what about the legos that have those motorized capabilities? they get more complex. are you offering those as well? >> we plan to offer them and extend to other educational toys on top of lego. i think the notion is we are trying to advocate science and engineering which is supported by the federal government as a curriculum. the notion is we are leveraging
the sharing economy and helping kids that until now did not know how to share or learn how to share. we are the first company in the world that teaches kids how to share. >> you have been doing some math of your own as well. you have raised nearly $7 million. >> that is correct, yes. the funding is to make sure that our operation runs smoother. we are investigating in a second operation on the east coast to reduce the shipping time. >> i want to thank you very much for joining us. he is the chief executive and the cofounder of pley. p-l-e-y. time now for our mystery guest. i have no idea who it is, but the producers have put together some clues. my mystery guest likes to suit up every day. he started working in the fashion industry when he was just 16 years of old. my mystery guest was reunited last year with the company that he started.
let us bring out our mystery guest. oh, i have to say -- it is not very hard. you are mr. abboud. >> yes. >> josephy abboud, nice to see you. i didn't have to start the clock. great to have you here. >> thank you. >> tell people -- you started when you were 16 years old. what were you doing at 16? >> working my way through high school and spending every dollar i had on clothing because i loved clothes when i was a kid. i worked my way through college working at a great men's store. i have loved it ever since. >> i remember you started out working at ralph lauren. not starting, but you actually created a part of your persona that you then took independent. >> when i worked for ralph lauren as one of the directors of design for four years, which was a great experience. because it is a great company.
then, i started -- i thought there was a point of view for menswear which did not exist which is a more modern american concept, not so preppy, not so traditional, and the same time not european. >> is it designed to be for men as opposed to boys? there seems to be this big divide that goes on. >> i think i have always wanted men to look like a man and not boys. when i started my first collection, my first idea was to take men from being too ivy league and make it a little more sensual, a little more sexy using different fabrics. we hit a nerve and american men really gravitated towards the brand. >> yes, and then they really gravitated towards you in the sense that you sold your company? for millions and millions. >> it was the trademark issue and, through the relationship with men's wearhouse which has
>> this is "taking stock" on bloomberg. i am pimm fox. my mystery guest is a mystery no longer. he is menswear designer, joseph abboud, the chief creative director now at men's wearhouse. i want people to understand a little bit of your pedigree in the business. the awards that you have won, the changes you have made in menswear making it more accessible to more people. >> right, well, i think that was the whole thing when i launched my first collection was to get to the american man in not a pretentious way. to buy that perfect suit that makes you feel good. you are wearing a navy suit which is a great standard. it is not about dressing for somebody else, it is about dressing for you and feeling good and being professional. i have loved it my whole life and every day is a new adventure. >> i saw the national suit drive going on.
>> yes, the national suit drive, it is the seventh year for men's wearhouse in helping americans who are out of work, unemployed to get gently-worn clothing that is donated to men's wearhouse so that we can empower them to get back into the workforce. you always stand a little straighter when you walk into a job interview with that right suit. we at men's warehouse have done an amazing job in terms of designing suits, selling suits, but also giving back to the community. >> tell us about making suits in massachusetts. >> yes, that is a true love. i grew up in boston -- >> the south end of boston. >> exactly. i loved clothing my whole life and i was able to work for ralph lauren. the factory in massachusetts has such a place in my heart because we have over 600 people who make extraordinary clothes. they make beautifully tailored
suits and jackets that we sell in all locations. the nice part about it is the garment is made with a canvas chest piece which is more comfortable, made with italian fabrics, and it is an incredible value. incredible quality, and i am so proud of it. it is almost like going home because it is up in massachusetts. >> i will throw out some names. i want your thoughts on the experience. louis of boston. >> louis of boston. that was probably one of the best experiences i have had. the idea that to be a retailer and believe in something. murray who was like my dad and mentor taught me if you believe in something, do it all the way. he was a brilliant merchant, probably one of the greatest we have known. >> you have obviously known the industry has changed because of the online application of customized suiting. >> right. that's right. >> what do you take away from that? >> i think it is a reality and i think it is great we can do
things online, but there is nothing like the experience of walking into a store and trying on a great suit and have a tailor custom fit it to you. we employ over 1200 tailors. at men's warehouse. think about that. a guy walks in and tries on the suit -- but, it is also the tailoring that becomes important. >> what are some of the trends now in men suiting? narrow lapels. wider lapels. narrow ties, wider ties, no ties. >> the problem with trends is that they are just that. i always believed in designing in the middle or little more on the fashion curve so that if i sell you a suit, i have an obligation to say if you buy the suit, it is good for you for three to four years. i don't want to tell you next year that the suit you bought was good last year and not good now. we have a certain obligation to the consumer to design on the forward side of the curve. but give them value. i don't like too extreme. i don't like anything to wide or too skinny. i think in the middle for men is
always best. >> let us move away from the office because we know everybody is trying to get more casual. what are you seeing in terms of the kinds of things that are being offered to men specifically for summer wear? >> what is interesting is the swing back to guys getting dressed up again. the young consumer has never really tasted that wearing of a suit, the idea that he is getting dressed up. now with all the information on the internet, they're learning about custom tailoring. about bespoke london.ville row in there is a real hunger for the young guy to get dressed, but a guy can use a suit much differently. wear it with an open shirt. it is not a suit of armor anymore. it is a suit of clothes. >> when you see advertisements for blue jeans, denim that cost $600, what goes through your head? >> i always think there has to be a fair price value proposition. i know the price of fabric. i don't think anybody should pay for a name, they should pay for a product.
for me, it is about price value proposition. when things get too expensive, i do not think they are credible and i think the customer is overpaying. >> are we going to see different lines of joseph abboud in men's wearhouse? >> yes, we have launched our collection now and it is performing really well. the signature suit is something we're really proud of, that suit made in massachusetts. shirts,will see dress you will see sportswear. it is a lifestyle brand. >> that is something that everybody is trying to capture. how do you do that? do you go to events? how do you make that happen? >> i think you have to understand the consumer. i spent my career trying to understand the american consumer and how he dresses both in his business attire and how do you dress to go to a brunch or meet your -- real life. that is what it is about. it is about fitting into your life. >> i want to thank you for fitting into our lives. menswear designer and legend, joseph abboud.